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Ebay Pulls Ads from Google AdWords Network in USA

     
7:01 pm on Jun 13, 2007 (gmt 0)

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[news.yahoo.com...]

EBay has pulled all of its paid search ads from Google AdWords network in the U.S in an eyebrow-raising move likely to be interpreted in the industry as a sign of deteriorating relations between the two Internet giants.

Durzy characterized the decision to pull the U.S. Google ads as an instance in a continued experiment eBay does to determine the best allocation of its advertising and marketing budget.

But a source familiar with the situation said the move is an angry reaction by eBay's management to Google's decision to hold a protest party concurrent with the start of eBay Live, the company's annual conference for merchants.

Why does it matter? eBay was once the largest ad buying on all of Google.

11:13 am on June 14, 2007 (gmt 0)

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If I had to take sides, it would be with Google, but only because eBay hasn't a clue about how to run a business and has become too expensive, clunky and watered down to use effectively.

That is what I thought of Google check-out when I used it last holiday season...very poorly done.

Google SHOULD take the fight to the next level and eliminate ebay auctions from their SERPs. They are nothing but spam. eBay would crumble like a stale cookie.

Do you really believe eBay would fail without Google? I hardly think so.

11:15 am on June 14, 2007 (gmt 0)

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I for one would like to see Google come up with a service that will make PayPal obsolete.

If anyone could do it, Google could. Look at the company. It's taking on Microsoft in new areas once Microsoft's turf, and there's no company too big for Google to fight or buy. I see nothing stopping Google from going after eBay. The folks at Google think big and a competitor for eBay and PayPal (which eBay bought) is a big idea.

"We've seen that the two companies have been on a collision course for a long time," said Derek Brown, an analyst for Cantor Fitzgerald. "This seems to be the latest and most bizarre twist."

EBay's ads showed up on Google 188.3 million times in March, according to comScore Networks, more than double the number run by Target, the No. 2 Google advertiser.

Didn't know Target was no. 2...

p/g

11:39 am on June 14, 2007 (gmt 0)

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Were those "find volcano on ebay" ads converting? I don't think pulling the ads will affect Ebay earnings.

For GOOG a 6% hit on revenue is a pretty good wallop, Wall Street won't ignore that for long.

11:53 am on June 14, 2007 (gmt 0)

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I have to agree with those who have questioned just how well these ads worked for Ebay. I mean how many times did you carry out a search just to find a totally crazy ebay ad. I imagine a lot of users would click the seriously of target ads just to see what they where all about. This would have driven the actual cost per action through the roof. Having said this there had to be a special agreement between Google and ebay for this type of targeting in the first place. To be honest I always imagines Google where more of an ebay affiliate than ebay being an ad word customer. Obviously this wasn't the case but in terms of cost and payment it may not have been far from the mark.

Mack.

12:40 pm on June 14, 2007 (gmt 0)

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So who's gonna short the GOOG stock?

Im sure this will hurt their bottom line. So much for "Do no evil" - quality score muhhaaaaaaa

12:55 pm on June 14, 2007 (gmt 0)

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No real surprises here - it was going to happen anyway. I guess eBay just saw it as the right opportunity to make a move and get some press.

Next stop, search.

2:23 pm on June 14, 2007 (gmt 0)

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Yep, I had a nasty experience with Ebay and it's still going on and has for the last 2 and a half years.

I hardly use Google, but so glad Goog pulled their ads.

Nice one!

2:34 pm on June 14, 2007 (gmt 0)

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Has anyone thought of that? Or is that kind of thinking process only possible coming from a passive/aggressive female mind?

Yup; I actually had that fleeting thought when they first announced they were booting a bunch of ads out of the AdWords program because they no longer fit the business model. I couldn't see how they could kick out eBay, even though anyone with more common sense than a head of lettuce could tell the ads were worthless, and 200m is not to be sneezed at, but considering Google plays on the billion dollar playing field and keeps growing, well, there's such a thing as acceptable short term loss for long term gain.

But of course, that's just crazy talk, innit?

2:51 pm on June 14, 2007 (gmt 0)

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I would say that if a good portion of those poor quality eBay ads go away for good, then maybe Google is serious about improving quality for users.

I've always been skeptical over user quality claims when those eBay spam ads were running.

3:12 pm on June 14, 2007 (gmt 0)

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Google SHOULD take the fight to the next level and eliminate ebay auctions from their SERPs. They are nothing but spam. eBay would crumble like a stale cookie.

Doing that certainly would improve the SERPs, but the timing would be poor, since eliminating eBay auction results would leave Google open to charges that large advertisers were being favored (and large ex-advertisers were being screwed) in search results.

It would be better for Google to quietly turn down the lights on eBay results after the current tiff is history.

4:32 pm on June 14, 2007 (gmt 0)

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Then again, since eBay only pulled the ads from the US distribution, they might well kiss and make up, and start running again. Who knows.
8:50 pm on June 14, 2007 (gmt 0)

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I suspect eBay was planning on pulling the ads anyways, and decided to turn what was going to be a basic business decision into a shot over the google checkout bow.

The big fear that Google has isn't so much eBay, but rather eBay / Microsoft / yahoo teaming up.

9:01 pm on June 14, 2007 (gmt 0)

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Has anyone considered that ebay pulled the ads because they simply cannot afford them anymore?

I saw an auction stats tracking site that says ebay listings are down by over a half million each month this year compared to last?

5:49 am on June 15, 2007 (gmt 0)

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eBay ads are back on my site (USA) - guess the spat is over.
5:53 am on June 15, 2007 (gmt 0)

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No more new and used dog food.

Or used kleenex - used plutonium - used food - used condoms - used anything. I did some screen snapshots of these gems because I expected that they'd go away someday. I sincerely hope today is that day.

6:51 am on June 15, 2007 (gmt 0)

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inactivist, maybe we just don't understand the importance of recycling for a clean environment and Ebay does.
5:07 pm on June 15, 2007 (gmt 0)

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I don't see ebay ads in the US yet.

Any idea or guess on how much of Google's revenue is from eBay?

7:51 pm on June 15, 2007 (gmt 0)

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Has anyone considered that ebay pulled the ads because they simply cannot afford them anymore?

LOL, Only Bill Gates has more money than Ebay.

Google's kind of like the rebellious teen. Daddy Ebay took the car keys away and the G boys are now behaving themselves like nice little corporate kids.

8:18 pm on June 15, 2007 (gmt 0)

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As far as auction numbers being down, that was due to a huge increase last year in selling fees. Year after year they raise their pricing up. We were a power seller and I personally know of 10-15 more power sellers who stopped selling because of their rate hikes!

If you have an auction, get payment via pay pal, pay the listing fees you could be paying 10-20% in fees! I know we pulled off from ebay last year because of that reason alone. Simply put, they are charging way to much to sell on their service. We took those savings and advertised in other places and have an overall better return with increased business.

So, if Ebay is saving money, will it lower its selling fees? Umm, I doubt that. Watch, later this year they will add a few more % to their fees.

10:09 pm on June 15, 2007 (gmt 0)

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> I don't see ebay ads in the US yet.

Trust me - they're back. I'm in the San Francisco Bay Area, USA.

1:47 pm on June 16, 2007 (gmt 0)

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Any seeing ebay ads on Google.com? Looking around and not seeing them but i do remember them as being pretty scarce before all of this
10:12 pm on June 16, 2007 (gmt 0)

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Yay they are back. I wonder what Google did to get them back.

<snip>

[edited by: Brett_Tabke at 1:11 pm (utc) on June 17, 2007]
[edit reason] no links to keyword searches please...especially affiliate searches... [/edit]

10:38 pm on June 16, 2007 (gmt 0)

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That's not eBay corporate. That is an affilate and they are not supposed to be advertising either.

iPo

10:53 pm on June 16, 2007 (gmt 0)

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He added that that the impact of eBay’s advertising withdrawal was reduced by the fact that 25 per cent of users visiting the internet auctioneer from Google do so after searching for eBay, rather than by clicking on one of the “sponsored links” that appear next to other search results. The data suggests that Google may be less powerful than people thought, at a time when the search engine is seeking to widen its empire – and drawing fresh criticism almost every day as a result of its perceived growing dominance.
[From The Times, June 16, 2007, 'Google power 'less than thought' as eBay starts boycott']

Google less powerful? Google? No, eBay's leadership, more like it!

This article is silly. All it shows is that eBay doesn't know what it's doing. It took them how many years to figure this out?

I never understood why eBay advertised so excitedly on Google, as if nobody had ever heard of eBay. It's as if all the effort was for those folks who had heard of eBay, had used it before, but were shopping early in the morning, and just happened to accidentally forget it existed when they went to buy something online.

But when the company was committed long-term (how many years?) to advertising dead popes, are we really surprised that its advertising execs were so clueless about Google?

p/g

4:57 am on June 17, 2007 (gmt 0)

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> That's not eBay corporate. That is an affilate and they are not supposed to be advertising either.

Sorry, but I think you're mistaken. The eBay ads I see on my sites are just eBay (www.ebay.com) - not affiliates.

12:37 pm on June 17, 2007 (gmt 0)

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Was just checking some of my Yahoo ads and my sectors are full of nonsensical eBay ads.
3:39 pm on June 17, 2007 (gmt 0)

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Sorry, but I think you're mistaken. The eBay ads I see on my sites are just eBay (www.ebay.com) - not affiliates.

Check the destination link. If it contains "rover.ebay.com" then it is an affiliate link.

iPo

5:11 pm on June 17, 2007 (gmt 0)

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> Check the destination link. If it contains "rover.ebay.com" then it is an affiliate link.

I have and it doesn't. URL is www.ebay.com

5:54 pm on June 17, 2007 (gmt 0)

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As far as auction numbers being down, that was due to a huge increase last year in selling fees. Year after year they raise their pricing up. We were a power seller and I personally know of 10-15 more power sellers who stopped selling because of their rate hikes!

If you have an auction, get payment via pay pal, pay the listing fees you could be paying 10-20% in fees! I know we pulled off from ebay last year because of that reason alone. Simply put, they are charging way to much to sell on their service. We took those savings and advertised in other places and have an overall better return with increased business.

I hear that - while I was never a big seller on eBay, I went back recently to list my son's dirt bike on eBay motors, only to find the listing fees were about quadruple what it would cost to run ads in local papers. Bye-bye eBay... (for me, anyway) - hello craigslist. (I wonder how many others there are who feel the same way? CL must be wreaking havoc on the eBay business...)

10:23 pm on June 17, 2007 (gmt 0)

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I've been reading some news and blogger analysis of the eBay ads/Google incident and I think a lot of people are missing the analysis based on some inaccurate assumptions.

A number of them are making a big deal about eBay's traffic from Google not dropping more after the ads were pulled.

Outside of the world of Adords advertisers & AdSense publishers, there seems to be little understanding of what Google's PPC advertising is really all about.

FarmBoy

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